right now, the gun battle that was under way in big bear lake, california, you can still see the flames at that cabin where police officers believe they had trapped christopher dorner, the ex-cop who had been on a murderous rampage for the last nine days, vowing to bring war to los angeles. and tonight, his fourth casualty, a sheriff's deputy has been killed. >> we are keeping an eye on that. report anything we learn about it. see it on the screen there. we do want to go back inside the house chamber, where you see more than four dozen victims of gun violence. they are the guests of the first lady and members of congress. >> that's right. they are from newtown, from aurora, from tucson and they include former congresswoman gabby giffords, of course, her husband, mark kelly there with her and i should point out those green and white ribbons they're wearing come them rate the victims of newtown. >> those are the colors of newtown high school. in the chamber tonight, gun

rights activist ted nugent. and in the chamber, our chief white house correspondent, jon karl. you are right above the speaker's shoulder, jon? >> right off to the left, 20 feet from gabby giffords and mark kelly. as we watch the president's cabinet come into this chamber, george, you will see a confident president come in. he is convinced that the american people are with him on the big issues. and he is also convinced that he has a mandate coming out of that election. so, he will be at times confrontational in this speech. compromising, willing to compromise, but only so much with the republicans. the key issue, as you mentioned, is the economy. they gave us some excerpts of the speech early. one that hit me was that he said that the economy, an economy that creates job, good, middle class jobs must be the north star for our efforts, for everything we do. and that will be the message here. this is a divided chamber. john boehner, right over his shoulder, just this morning, told reporters that he doesn't

think the president has the guts to make the tough decisions to deal with the deficit. that was an exact quote. "i don't think he has the guts to do it." so, a divided chamber to be sure. >> that's right, jon. he said he didn't think the president had the courage to take on his own team. those were fighting words that he said to many of us this morning. but i want to going ba and show everyone mrs. obama coming into the room. and we saw her going down to resounding applause. and i want to point out, you're looking next to her will be kaitlin roig, who is the first grade teacher at newtown who told me about taking her 15 first graders into the bathroom, shielding them from the gunman, saying, "the good guys are on their way." >> and the president knows he has a job to do on ending gun violence. he's laid out proposal, including universal background checks, an assault weapons ban, a limit on high capacity magazines. i want to bring in our own

matthew dowd right here. he knows that most of that or a lot of it is not going to get through this congress. >> this interesting thing about this speech is, he'll obviously have a litany of things but he's hanging his hat, from what we can tell, about who he has in that crowd and who he's brought in. on gun control legislation. it's going to be a very difficult thing to get some of that stuff through, even in the aftermath of the crisis we face. >> even among, donna brazile joining us tonight, even among democrats, especially in the senate. a lot of senate democrats, states that mitt romney carried in 2012, do not want to go along. >> the president believes democrats can be brought along around some common sense gun safety measures, universal background checks, making sure that there's adequate regulations in effect, but the president tonight is really going to focus on the economy. he believes it's time to chart a new course to maintain the economic progress we've seen over the last few years and to begin to revive the middle class. >> and republican strategist

nicolle wallace, what are you going to be watching for? >> no doubt, this is the president's night, but it's also the most important speech in the so far short career of senator marco rubio. so, i think all eyes are going to be on our -- i won't say our rising star, i might say our only star. >> and george will, that will be one of the few areas tonight where there could be some common ground between the president and marco rubio, between the president and top republicans, immigration reform. >> immigration reform is a promising area for cooperation. far more important than gun control, if only because if the president gets all he's asking for on gun control, it won't make a particle of difference in gun violence, as far as i can tell, however, immigration concerns not just the 11 million illegal immigrants in the country who are looking for a path to citizenship, but the other 300 million americans who have a stake in immigration to revitalize our economy and replenish the work force.

>> new secretary of state. >> john kerry, former senator of massachusetts, next to the chief justice of the supreme court. and, of course, they're in the next several weeks going to be dealing with gay marriage, one of the other signature issues this administration will deal with other the second term. >> and you pointed out earlier, george, that justices alito, scalia and thomas did not walk in. we assume they're not going to be there. and justice scalia said he had a speech tonight, couldn't make it, but said it's turned into a childish spectacle and so he didn't intend to come. i want to go back to jon karl. jon, they had something called date night two years ago. there was going to be a great attempt to link arms, to show some solidarity, to get work done together. is it still happening tonight? >> well, i've got to tell you, diane, it's almost a thing of the past. not entirely. for the most part, the republicans are sitting on their side, the democrats are staying on their side. but there are some notable exceptions that i'm noticing as

i look down into the chamber. first of all, you see senators lindsey graham and john mccain. two of the biggest headaches for this president, especially going into the second term, but sitting between them tonight, you will see senator chuck schumer, the number three democrat in the house. he wants to craft an immigration compromise with republicans. they're his two closest allies on that. so, they will be down there together. and also, i see, out of camera view off to the side, we have, for the first time in american history, two african-american senators. both recently appointed to fill vacancies. tim scott of south carolina, senator will cowan of massachusetts. and they are democrat and republican and they are sitting together also on the side. but for the most part, they are back to their battle stations here. >> another simple of bipartisan unity, about 40 members of congress will be wearing orange pins, that stands for the no labels movement.

democrats and republicans who are committed, they say, to reaching across party lines in order to get something done. about 40 or them wearing those pips tonight. >> just a little sense of the room. 948 people seated and in the galleries and standing in that room tonight. and the president's speech, we're not sure how long it will be. it was an hour and four minutes last year. and i think it's probably going to be a -- >> about that. the white house is saying without applause it ran 50 minutes. they said the speech has been done for several days. no crisis in the last couple of days before the speech. they think with applause, it could go about an hour. one other note on marco rubio, giving the response tonight, giving the response both in english and spanish, separately on spanish television networks. spanish version is going to go a little longer. >> but it is the same, we are told, it's identical, just a little bit longer. give us a sense of what you expect him to do.

what's his headline? >> i shared this on george's show on sunday. but he started working on this response to tonight's speech in early january after hearing the president's inaugural address. i'm told he tore up the inauguration and started over. >> we are expecting paul irving to announce the president. >> mr. speaker -- the president of the united states! >> and here's the president making his way along the aisle. and it's worth pointing out, a lot of the people on that aisle have been waiting hours. to make sure that they got those seats. they had a chance to say

whatever their one sentence was to the president. >> behind the president, the republican leader of the house, leader of the senate, harry reid. the president is not going to try to reach for the kind of soaring rhetoric you saw in the inaugural. observations of many that he didn't really focus on the economy in the inaugural address. but can you be sure they're going to make that the bulk of the speech this evening. nancy pelosi also behind the president. >> we do expect him to at least to talk about afghanistan, although it will not be the concentration of the speech, to talk about foreign policy and the white house has indicated there will be other speeches on that front. i wanted to say, george, i was in the house chamber earlier this morning at 10:00 in the morning and some of these people

were already in there. >> long day and a long night. you mentioned afghanistan, we're joined bid martha raddatz, our chief global affairs correspondent. the president did put a number on how many troops will come out this year, martha. >> 34,000 troops by this time next year will be out of afghanistan. we have about 66,000 troops there now. so, that is a big announcement. also, one change he did have to make to his speech today is the north korean conducted a nuclear test today, the third nuclear test they've conducted, two of those nuclear tests have been during president obama's term. >> the white house encouraged, martha, by the response of china to that north korean nuclear test. they believe china willing to crack down a little harder now? >> well, i think the response was somewhat muted from china, i think they expected more. they condemned the test. china tried to talk north korea

out of testing a nuclear weapon but they did it. but they didn't really threaten them with any action but believe me, president obama would like to get china, china's help in this issue. >> so, tell us, again, matt, how much can the president get done tonight? how much could he put concerted pressure on this room? >> i think it's really interesting, because in terms of second term presidents, they understand that political capital is a diminishing resource. they know that two key pillars for that political capital are his inaugural address and state of the union address. those are the two most important things he can do to keep momentum moving. if he starts to lose it, it's very difficult for him to do it. that's why this speech and the inaugural, they always look at them like a package, put together a package to keep momentum going. >> the other way they're going to try to keep momentum going by keeping the president's campaign apparatus in place. they call it now organizing for

america. >> right after the president delivered his state of the union address tonight, his administration and others will be on the phone with tens of millions of americans who supported president obama, they are activating them to follow up on his legislative agenda and they also plan, as you well know, to travel to north carolina and georgia in the next couple of days to continue the momentum throughout the country. >> we just saw the president giving a hug to senator mark kirk. suffered a stroke earlier this year. this has been a long struggle back for him but he's there with the president. >> we also saw how speaker john boehner waiting. he indicated today that they are going to be streaming on the republican website live fact checks of the president as he speaks and some said, are you going to be tweeting behind him tonight? and he laughed and said, well, that might be something to do. >> george, one thing that

speaker john boehner, also the senate republican leader mitch mcconnell seems to have given up on is any hope of reaching agreement with the president on the big deficit issues early this year. >> be interesting to see what the president says about the sequester tonight. it was, of course, his idea, 15 months ago to create the sequester, the doomsday machine, too horrible for republicans to take because of the defense cuts. >> signed onto -- >> by everybody, but this seemed to have been originated in his house and we will see tonight whether or not he and the republicans are facing the sequester. >> let's listen to the president. >> thank you. thank you. thank you. do i give these to you right now?

>> members of congress, i have the high privilege and distinct honor of presenting to you, the president of the united states. >> thank you. thank you. thank you. thank you. thank you. thank you very much. thank you so much. thank you. thank you very much. thank you. mr. speaker, mr. vice president, members of congress, fellow american americans, 51 years ago, john f. kennedy declared to this chamber

that the constitution makes us not rivals for power but partners for progress. it is my task, he said, to report the state of the union. to improve it is the task of us all. tonight, thanks to the grit and determination of the american people, there is much progress to report. after a decade of grinding war, our brave men and women in uniform are coming home. [ applause ]

after years of gruelling recession, our businesses have created over 6 million new jobs. we buy more american cars than we have in five years. and less foreign oil than we have in 20. our housing market is healing. our stock market is rebounding. and consumers, patients and homeowners enjoy stronger protections than ever before. so, together, we have clear eed away the rubble of crisis. and we can say with renewed confidence that the state of our union is stronger.

[ applause ] but we gather here knowing that there are millions of americans whose hard work and dedication have not yet been rewarded. our economy is adding jobs, but too many people still can't find full-time employment. corporate profits have skyrocketed to all-time highs. but for more than a decade, wages and incomes have barely budged. it is our generation's task, then, to reignite the true engine of america's economic growth. a rising, thriving middle class. it is -- it is our unfinished task to restore the basic

bargain that built this country. the idea that if you work hard and meet your responsibilities, you can get ahead. no matter where you come from, no matter what you look like or who you love. it is our unfinished task to make sure that this government works on behalf of the many. and not just the few. and it encourages free enterprise, rewards individual initiatives and opens the doors of opportunity to every child across this great nation. the american people don't expect government to solve every problem. they don't expect those of us in this chamber to agree on every issue. but they do expect us to put the nation's interests before party.

[ applause ] they do expect us to forge reasonable compromise where we can. for they know that an american moves forward only when we do so together. and that the responsibility of improving this union remains the task of us all. now, our work must begin by making some basic decisions about our budget. decisions that will have a huge impact on the strength of our recovery. over the last few years, both parties have worked together to reduce the deficit by more than $2.5 trillion. mostly through spending cuts, but also by raising tax rates on the wealthiest 1% of americans. as a result, we are more than

halfway towards the goal of $4 trillion in deficit reduction that economists say we need to stabilize our finances. now, we need to finish the job. and the question is, how? in 2011, congress passed a law, saying that if both parties couldn't agree on a plan to reach our deficit goal, about a trillion dollars worth of budget cuts would automatically go into effect this year. these sudden, harsh, arbitrary cuts would jeopardize our military readiness, they'd devastate pryor tips like education and energy and medical research, they would certainly slow our recovery. and cost us hundreds of thousands of jobs. that's why democrats, republicans, business leaders and economists have already said that these cuts, known here in washington as the sequester, are

a really bad idea. now, some in congress have proposed preventing only the defense cuts. by making even bigger cuts to things like education and job training. medicare and social security benefits. that idea is even worse. [ applause ] yes, the biggest driver of our long-term debt is the rising cost of health care for an aging population. and those of us who care deeply about programs like medicare must embrace the need for modest reforms. otherwise, our retirement programs will crowd out the investments we need for our

children. and jeopardize the promise of a secure retirement for future generations. but we can't ask senior citizens and working families to shoulder the entire burden of deficit reduction while asking nothing more from the wealthiest and the most powerful. we won't grow the middle class simply by shifting the cost of health care or college onto families that are already struggling or by forcing communities to lay off for teachers and cops and firefighters. most americans, democrats, republicans and independents understand that we can't just cut our way to prosperity. they know that broad-based economic growth requires a balanced approach to deficit reduction. with spending cuts and revenue. and with everybody doing their fair share. and that's the approach i offer tonight. on medicare, i'm prepared to

enact reforms that will achieve the same amount of health care savings by the beginning of the next decade as the reforms proposed by the bipartisan simpson/bowles commission. already, the affordable care ability is helping to slow the growth of health care costs. and the reforms i'm proposing go even further. we'll reduce taxpayer subsidies to prescription drug companies and ask more from the wealthiest seniors. we'll bring down costs by changing the way our government pays for medicare, because our medical bills shouldn't be based on the number of tests ordered or days spent in the hospital. they should be based on the quality of care that our seniors receive. and i am open to additional reforms from both parties. so long as they don't violate

the guarantee of a secure retirement. our government shouldn't make promises we cannot keep. but we must keep the promises we've already made. [ cheers and applause ] to hit the rest of our deficit reduction target, we should do what leaders in both parties have already suggested. and save hundreds of billions of dollars by getting rid of tax loopholes and deductions for the well off and well connected. afterall, why would we choose to make deeper cuts to education and medicare, just to protect special interest tax breaks? how is that fair? why is it that deficit reduction is a big emergency, justifying

making cuts in social security benefits but not closing some loopholes? how does that promote growth? now is our best chance for bipartisan, comprehensive tax reform that encourages job creation and helps bring down the deficit. we can get this done. the american people deserve a tax code that helps small businesses spend less time filling out complicated forms and more time expanding and hiring. a tax code that ensure s billionaires with high-powered accountants can't work the system. a tax code that lowers incentives to move jobs overseas and lowers tax rates for businesses and manufacturers that are creating jobs right here in the united states of america.

that's what tax reform can deliver. that's what we can do together. i realize that tax reform and entitlement reform, will not be easy. the politics will be hard for both sides. none of us will get 100% of what we want. but the alternative will cost us jobs. hurt our economy. hardship on millions of hard working americans. so, let's set party interest aside and work to pass a budget that replaces reckless cuts with smart savings and wise investments in our future. and let's do it without the brinkmanship that stresses consumers and scares off investors. the greatest nation on earth -- the greatest nation on earth

cannot keep conducting its business by drifting from one manufactured crisis to the next. we can't do it. [ applause ] let's agree. let's agree right here, right now, to keep the people's government open and pay our bills on time and always uphold the full faith and credit of the united states of america. the american people have worked too hard for too long, rebuilding from one crisis to see their elected officials cause another. now -- most of us agree that a plan to reduce the deficit must be part of our agenda. but let's be clear. deficit reduction alone is not

an economic plan. a growing economy that creates good, middle class jobs, that must be the north star that guides our efforts. every day, we should ask ourselves three questions as a nation. how do we attract more jobs to our shores? how do we equip our people with the skills they need to get those jobs? and how do we make sure that hard work leads to a decent living? a year and a half ago, i put forward and american jobs act that independent economists said would create more than 1 million new jobs. and i thank the last congress for passing some of that agenda. i urge this congress to pass the rest. but -- tonight, i'll lay out additional proposals that are

fully paid for and fully consistent with the budget framework both parties agreed to, just 18 months ago. let me repeat. nothing i'm proposing tonight should increase our deficit by a single dime. it is not a bigger government we need, but a smarter government that sets priorities and invests in broad-based growth. that's what we should be looking for. our first priority is making america a magnet for new jobs in manufacturing. after shedding jobs for more than ten years, our manufacturers have added about 500,000 jobs over the past three. caterpillar is bringing jobs back from japan. ford is bringing jobs back from mexico. and this year, apple will start making macs in america again.

there are things we can do, right now, to act semirate thxc trend. last year, we created our first manufacturing innovation ins tult in youngstown, ohio, a once shuddered warehouse is now a state of the art lab where there are potentials to revolutionize the way we make almost everything. there's no reason why this can't happen in other towns. i'm announcing three more of these factories, to turn regions left behind into global centers of high tech jobs. and i ask this congress to help create a network of 15 of these hubs and guarantee that the next revolution in manufacturing is made right here in america. we can get that done.

[ applause ] now, if we want to make the best products, we also have to invest in the best ideas. every dollar we invested to map the human gee know returned $140 to our economy. today, our scientists are mapping the human brain to unlock the answers to alzheimer's. they are developing drugs to regenerate damaged organs. devising new materials to make batteries ten times more powerful. now is not the time to gut these job-creating investments in science and innovation. now is the time to reach a level of research and development not seen since the height of the space race. we need to make those investments.

today, no area holds more promise than our investments in american energy. after years of talking about it, we're finally poised to control our own energy future. we produce more oil at home than we have in 15 years. we have doubled the distance our cars will go on a gallon of gas. and the amount of renewable energy we generate from sources like wind and solar. with tens of thousands of good american jobs to show for it. we produce more natural gas than ever before. and nearly everyone's energy bill is lower because of it. and over the last four years, our missions of the dangerous carbon pollution that threatens our planet have actually fallen. but for the sake of our children and our future, we must do more to combat climate change.

[ applause ] now, it's true that no single event makes a trend. but the fact is, the 12 hottest years on record have all come in the last 15. heat waves, droughts, wildfires, floods. all are now more frequent and more intense. we can choose to believe that superstorm sandy and the most severe drought in decades and the worst wildfires some states have ever seen were all just a freak coincidence, or we can choose to believe in the overwhelming judgment of science and act before it's too late.

now, the good news is, we can make meaningful progress on this issue, while driving strong economic growth. i urge this congress to get together, pursue a bipartisan market-based solution to climate change, like the one john mccain and joe lieberman worked on together a few years ago. but if congress won't act soon to protect future generations, i will. i will direct -- i will direct my cabinet to come up with executive actions we can take now and in the future to reduce pollution, prepare our communities for the consequences of climate change and speed the transition to more sustainable sources of energy. and four years ago, other countries dominated the clean energy market and the jobs that came with it. and we've begun to change that. last year, wind energy added nearly half of all new power capacity in america. so, let's generate even more. solar energy gets cheaper by the

year. let's drive down costs even further. as long as countries like china keep going all-in on clean energy, so must we. now in the meantime, the natural gas boom has led to cleaner power and greater energy independence. we need to encourage that. that's why my administration will keep cutting red tape and speeding up new oil and gasper mi gas permits. but i also want to work with this congress to encourage the research and technology that helps natural gas burn even cleaner and protects our air and our water. in fact, much of our newfound energy is drawn from lands and waters that we, the public, own together. so, tonight, i propose we use some of our oil and gas revenues to fund and energy security trust that will drive new research and technology to shift our cars and trucks off oil for good. if a nonpartisan coalition of ceos and retired generals and

admirals can get behind this idea, then so can we. let's take their advice and free our families and businesses from the spainful spikes in gas prices we've put up with for far too long. i'm issuing a new goal for america. let's cut in half the energy wasted by our homes and businesses over the next 20 years. we'll work with the states to do it. those states with the best ideas to create jobs and lower energy bills by constructing more we efficient buildings will receive federal support to help make that happen. america's energy sector is just one part of an aging inf infrastructure badly in need of repair. ask any ceo where they'd rather locate and hire. a country with deteriorating roads and bridges or one with high speed rail and internet? high tech schools, self-healing power grids?

the ceo ofsaid if we upgrade ou inf infrastructure, they'll bring even more jobs. and that's the attitude of countries all around the world. i know you want those jobs in your districts, i've seen all those ribbon cuttings. so -- tonight, i propose a fix it first program. to put people to work as soon as possible on our most urgent repairs. like the nearly 70,000 struct e structurally deficient bridges across the country. [ applause ] and to make sure taxpayers don't shoulder the whole burden, i'm also proposing a partnership to rebuild america that attracts

private capital to upgrade what our businesses need most. modern ports to move our goods. modern pipelines to withstand a storm. modern schools, worthy of our children. let's prove there's no better place to do business than here, in the united states of america and let's start right away. we can get this done. and part of our rebuilding effort must also involve our housing sector. the good news is, our housing market is finally healing from the collapse of 2007. home prices are rising at the fastest pace in six years. home purchases are up nearly 50%. and construction is expanding again. but even with mortgage rates near a 50-year low, too many families with solid credit who want to buy a home are being rejected. too many families who never missed a payment and want to

refinance are being told no. that's holding our entire economy back. we need to fix it. right now, there's a bill in this congress that would give every responsible homeowner in america the chance to save $3,000 a year by refinancing at today's rates. democrats and republicans have supported it before. so what are we waiting for? take a vote and send me that bill. why would we wibe against that? why would that be a partisan issue? helping folks refinance? right now, overlapping regulations keep responsible young families from buying their first home. what's holding us back? let's streamline the process and help our economy grow. these initiatives in

manufacturing, energy, inf infrastructure, housing, all these things will help small business owners expand and create new jobs. but none of it will matter unless we also equip our citizens with the skills and training to fill those jobs. and that has to start at the earliest possible age. you know, study after study shows that the sooner a child begins learning, the better he or she does down the road. but today, fewer than 3 in 10 4-year-olds are enrolled in a high quality preschool program. most middle class parents can't afford a few hundred bucks a week for private preschool. and for poor kids, who need help the most, this lack of access to preschool education can shadow them for the rest of their lives.

so, tonight, i propose working with states to make high quality preschool available to every single child in america. that's something we should be able to do. every dollar we invest in high quality early childhood education can save more than $7 later on. by boosting graduation rates. reducing teen pregnancy. even reducing violent crime. in states that make it a priority to educate our youngest children, like georgia, or oklahoma, studies show students grow up more likely to read and do math at grade level, graduate high school, hold a job.

form more stable families of their own. we know this works. so, let's do what works and make sure none of our children start the race of life already behind. let's give our kids that chance. [ applause ] let's also make sure that a high school diploma puts our kids on the path to a good job. right now, countries like germany focus on grej waaduatin their high school students with an equivalent of a technical degree from one of our community colleges. they've been trained for the jobs that are there. now, at schools like p-tech in brooklyn, a collaboration between new york public schools and city university of new york and ibm, students will graduate with a high school diploma and

an associates degree in compute earl rs or engineers. weapon ne we need to give every american a chance like this. four years ago, we started race to the top, a competition that convinced every state to develop higher standards. all for about 1% of what we spend on education each year. tonight, i'm announcing a new challenge. to redesign america's high schools so they better equip graduates for the demands of a high tech economy. and we'll reward schools that develop new props with colleges and employers and create classes that focus on science, technology, engineering and math. the skills today's employers are looking for to fill the jobs that are there right now and will be there in the future. now, even with better high schools, most young people will need some higher education. it's a simple fact.

the more education you've got, the more likely you are to have a good job and work your way into the middle class. but today's skyrocketing costs price too many young people out oaf a higher education. or saddle them with unsustainable debt. through tax credits, grants and better loans, we've made college more affordable for millions of students and families over the last few years. but taxpayers can't keep on subsidizing higher and higher and higher costs for higher education. colleges must do their part to keep costs down. and it's our job to make sure that they do. so, tonight, i ask congress to change the higher education act so that affordability and value are included in determining which colleges receive certain times of federal aid.

and tomorrow, my administration will release a new college scorecard that parents and students can use to compare schools becaused on a simple criteria. where you can get the most bang for your education al buck. now, to grow our middle class, our citizens have to have access to the education and training that today's jobs require. but we also have to make sure that america remains a place where everyone who is willing to work, everybody who is willing to work hard has the chance to get ahead. our economy is stronger when we harness the talents and ingenuity of striving, hopeful immigrants. and right now, leaders from the business, labor, law enforcement, faith communities, they all agree that the time has come to pass comprehensive immigration reform. now's the time to do it. now's the time to get it done.

now's the time to get it done. [ applause ] real reform means stronger board your security. and we can build on the progress my administration's already made, putting more boots on the southern border than at any time in our history. and reducing illegal crossings to their lowest levels in 40 years. real reform means establishing a responsible pathway to earned citizenship. passing a background check, paying taxes and a meaningful penalty, learning english and going to the back of the line, behind the folks trying to come here legally. and real reform means fixing the legal immigration system. to cut waiting periods and attract the highly skilled

entrepreneurs and engineers that will help create jobs and grow our economy. [ applause ] in other words, we know what needs to be done. and as we speak, bipartisan groups in both chambers are working diligently to draft a bill, and i applaud their efforts. so, let's get this done. send me a comprehensive immigration reform bill in the next few months and i will sign it right away and america will be better for it. let's get it done. let's get it done. but we can't stop there. we know our economy is stronger when our wives, our mothers, our daughters can live their lives

free from discrimination in the workplace and free from the fear of domestic violence. today, the senate passed the violence against women act that joe biden originally wrote almost 20 years ago, and i now urge the house to do the same. good job, joe. and i ask this congress to declare that women should earn a living, equal to their efforts. and finally pass the paycheck fairness act this year. we know our economy's stronger when we reward an honest day's work with honest wages. but today, a full-time worker making the minimum wage earns

$14,500 a year. even with the tax relief we've put in place, a family with two kids that earns the minimum wage still lives below the poverty line. that's wrong. that's why since the last time this congress raised the minimum wage, 19 states have chosen to bump theirs even higher. tonight, let's declare that in the wealthiest nation on earth, no one who works full time should have to live in poverty and raise the federal minimum wage to $9 an hour. we should be able to get that done. this single step would raise the incomes of millions of working families. it could mean the difference between groceries or the food bank.

rent or eviction. scraping by or finally getting ahead. for businesses across the country, it would mean customers with more money in their pockets. and a whole lot of folks out there would probably need less help from government. in fact, working folks shouldn't have to wait year after year for the minimum wage to go up while ceo pay's never been higher. so, here's an idea that governor romney and i actually agreed on last year. let's tie the minimum wage to the cost of living so that it finally becomes a wage you can live on. tonight, let's also recognize that there are communities in this country where, no matter how hard you work, it is virtually impossible to get ahead. factory towns decimated from years of plants packing up. inescapable pockets of poverty.

urban and rural. where young adults are still fighting for their first job. america's not a place where the chance of birth or circumstance should decide our destiny. and that's why we need to build new ladders of opportunity into the middle class, for all who are willing to climb them. let's offer incentives to companies that hire americans who have got what it takes to fill that job opening, but have been out of work so long that no one will give them a chance anymore. let's put people back to work rebuilding vacant homes in rundown neighborhoods. this year, my administration will begin to partner with 20 of the hardest-hit towns in america to get these communities back on their feet. and we'll work with local leaders to target resources and public safety and education. and housing. we'll give new tax credits to businesses that hire and invest. and we'll work to strengthen families by removing the financial deterrents to marriage for low income couples. and do more to encourage

fatherhood. because what makes you a man isn't the ability to conceive a child, it's having the courage to raise one. and we want to encourage that. we want to help that. [ applause ] stronger families. stronger communities. a stronger america. it is this kind of prosperity, broad, shared, built on a thriving middle class, that has always been the source of our progress at home. it's always the foundation of our power and influence throughout the world. tonight, we stand united in saluting the troops and civilians who sacrifice every day to protect us. because of them, we can say with confidence that america will complete its mission in

afghanistan and achieve our objective of defeating the core of al qaeda. [ applause ] already, we have brought home 33,000 of our brave servicemen and women. this spring, our forces will move into a support role. while afghan security forces take the lead. tonight, i can announce that over the next year, another 34,000 american troops will come home from afghanistan. this drawdown will continue and by the end of next year, our war in afghanistan will be over. [ applause ]

beyond 2014, america's commitment to a unify and sovereign afghanistan will endure. but the nature of our commitment will change. we're negotiating an agreement with the afghan government that focuses on two missions. training and equipping afghan forces so that the country does not again slip into chaos. and counterterrorism efforts that allow us to pursue the remnants of al qaeda and their affilia affiliates. today, the organization that attacked us on 9/11 is a shadow of its former self. it's true. different al qaeda affiliates and extremist groups have emerged. the threat these groups pose is evolving. but to meet this threat, we

don't need to send tens of thousands of our sons and daughters abroad or occupy other nations. instead, we'll need to help countries like yemen and libya and somalia provide for their own security and help allies who take the fight to terrorists, as we have in mali. and where necessary, through a range of capabilities, we will continue to take direction action against those terrorists who pose the gravest threat to americans. now -- as we do, we must enlist our values in the fight. that's why my administration has worked tirelessly to forge a durable, legal and policy framework to guide our counterterrorism efforts. throughout, we have kept congress fully informed of our efforts. i recognize that, in our democracy, no one should just take my word for it, that we're

doing things the right way. so, in the months ahead, i will continue to engage congress to ensure not only their our targeting, detention and prosecution of terrorists remains consistent with our laws and system of checks and balances, but that our efforts are even more transparent to the american people and to the world. of course -- our challenges don't end with al qaeda. america will continue to lead the effort to prevent the spread of the world's most dangerous weapons. the regime in north korea must know they will only achieve security and prosperity by meeting their international obligations. provocations of the sort we saw last night will only further isolate them, as we stand by our allies, strengthen our own missile defense and lead the world in taking firm action in response to these threats. likewise, the leaders of iran must recognize that now's the

time for a diplomatic solution, because a coalition stands united in demanding that they meet their obligations, and we will do what is necessary to prevent them from getting a nuclear weapon. [ applause ] at the same time, we'll engage russia to seek further reductions in our nuclear arsenals and continue leading the global effort to secure nuclear materials that could fall into the wrong hands. because our ability to influence depends on our willingness to lead and meet our obligations. america must also face the rapidly growing threat from cyber attacks. now -- we know hackers steal people's identities and infiltrate private e-mails.

we know foreign countries and companies swipe our corporate secrets. now, our enemies are also seeking the ability to sabotage our power grid. our financial institutions. our air traffic control systems. we cannot look back years from now and wonder why we did nothing in the face of real threats to our security and our economy. that's why earlier today, i signed a new executive order that will strengthen our cyber defenses by increasing information sharing and developing standards to protect our national security, our jobs and our privacy. but now -- now congress must act, as well, by passing legislation to give our government a greater capacity to secure our networks and deter attacks. this is something we should be able to get done on a bipartisan basis.

now, even as we protect our people, we should remember that today's world presents not just dangers, not just threats, it presents opportunities. to boost american exports, support american jobs and level the playing field in the growing markets of asia, we intend to complete negotiations on a transpacific partnership. and tonight, i'm announcing that we will launch talks on a comprehensive transatlantic trade partnership with the european union, because trade that is fair and free across the atlantic supports millions of good paying american jobs. we also know that progress in the most impoverished parts of our world enriches us all. not only because it creates new

markets, more stable order in certain regions of the world, but also because it's the right thing to do. in many places, people live on little more than a dollar a day. so, the united states will join with our allies to eradicate such extreme poverty, by connecting more people to the global economy. by empowering women. by giving our young and brightest minds new opportunities to serve. and helping communities to field and power and educate themselves. by saving the world's children from preventable deaths. and by realizing the promise of an aids-free generation, which is within our reach. you see -- you see, america must remain a beacon to all who seek freedom during this period of historic change. i saw the power of hope last

year in burma, when they welcomed an american president into the home where she had been imprisoned for years. when thousands of burmese lined the streets, waving american flags, including a man who said, "there is justice and law in the united states. i want our country to be like that." in defense of freedom, we'll remain the anchor of strong alliances, from europe to asia. in the middle east, we will stand with citizens as they demand their universal rights and support stable transitions to democracy. we know the process will be messy. and we cannot presume to dictate the course of change in countries like egypt, but we can and will insist on respect for the fundamental rights of all

people. we'll keep the pressure on a syrian regime that has murdered its own people. and support opposition leaders that respect the rights of every syrian. and we will stand steadfast with israel in pursuit of security and a lasting peace. [ applause ] these are the messages that i'll deliver when i travel to the middle east next month. and all this work depends on the courage and sacrifice of those who serve in dangerous places at great personal risk. our diplomats, our intelligence officers and the men and women of the united states armed forces. as long as i'm commander in chief, we will do whatever we

must to protect those who serve their country abroad and we will maintain the best military the world has ever known. we'll invest in new capabilities, even as we reduce waste and war-time spending. we will ensure equal treatment for all service members and equal benefits for their families, gay and straight. we will draw upon the courage and skills of our sisters and daughters and moms, because women have proven, under fire, that they are ready for combat. we will keep faith with our veterans, investing in world class care, including mental

health care, for our wounded warriors. supporting our military famil s families, giving our veterans the benefits that they have earned. and i want to thank my wife michelle and dr. jill biden for their continued dedication to serving our military families as well as they have served us. thank you, honey. thank you, jill. defending our freedom, though, is not just the job of our military alone. we must all do our part to make sure our god-given rights are

protected here at home. that includes one of the most fundamental rights of a democracy. the right to vote. now -- [ applause ] when any american, no matter where they live, or what their party, are denied that right, because they can't afford to wait for five or six or seven hours just to cast their ballot? we are betraying our ideals. so -- so, tonight, i'm announcing a nonpartisan commission to improve the voting experience in america. and it definitely needs improvement. i'm asking two long-time experts

in the field, who, by the way, recently served as the top attorneys for my campaign and for governor romney's campaign, to lead it. we can fix this. and we will. the american people demand it and so does our democracy. of course -- what i've said tonight matters little if we don't come together to protect our most precious resource. our children. it has been two months since newtown. i know this is not the first time this country has debated how to reduce gun violence. but this time is different.

overwhelming majorities of americans, americans who believe in the second amendment, have come together around common sense reform. like background checks that will make it harder for criminals to get their hands on a gun. senators -- senators of both parties are working together on tough new laws to prevent anyone from buying guns for resale to criminals. police chiefs are asking our help to get weapons of war and massive ammunition magazines off our streets, because these police chiefs, they're tied of seeing their guys and gals being outgunned. each of these proposals deserves a vote in congress. [ applause ]

now, if you want to vote no, that's your choice. but these proposals deserve a vote. because in the two months since newtown, more than 1,000 birthdays, graduations, anniversaries, have been stolen from our lives by a bullet from a gun. more than 1,000. one of those we lost was a young girl named hadiya pendleton. she was 15 years old. she loved fig newtons and lip gloss. she was a majorette. she was so good to her friends, they all thought they were her best friend. just three weeks ago, she was here, in washington, with her classmates, performing for her country at my inauguration. and a week later, she was shot

and killed in a chicago park after school. just a mile away from my house. hadiya's parents, nate and cleo, are in this chamber tonight, along with more than two dozen americans whose lives have been torn apart by gun violence. they deserve a vote. they deserve a vote. [ applause ] they deserve a vote. gabby giffords deserves a vote. the families of newtown deserve a vote. the families of aurora deserve a vote.

the families of oak creek and tucson and blacksburg and the countless other communities ripped open by gun violence, they deserve a simple vote. they deserve -- they deserve a simple vote. our actions will not present every senseless act of violence in this country. in fact, no laws, no initiatives, no administrative acts will perfectly solve all the challenges i've outlined tonight. but we were never sent here to be perfect. we were sent here to make what difference we can. to secure this nation, expand opportunity, uphold our eye deems through the hard, often frustrating but absolutely

necessary work of self-government. we were sent here to look out for our fellow americans, the same way they look out for one another. every single day. usually without fanfare, all across this country. we should follow their example. we should follow the example of a new york city nurse named menchu sanchez. when hurricane sandy plunged her hospital into darkness, she wasn't thinking about how her own home was faring. her mind was on the 20 precious newborns in her care and the rescue plan she divised that kept them all safe. we should follow the example of a north miami woman named desiline victor. she was told the wait to vote might be six hours. and as time ticked by, her

concern was not with her tired body or aching feet, but whether folks like her would get to have their say. and hour after hour, a throng of people stayed in line to support her. because desiline is 102 years old, andrupted in cheers when she finally put a sticker on that said, "i voted." [ applause ] we should follow the example of a police officer named brian murphy. when a gunman opened fire on a

sikh temple in wisconsin, brian was the first to arrive and he did not consider his own safety. he fought back. until help arrived. and ordered his fellow officers to protect the safety of the fellow americans worshipping inside. even as he lay bleeding from 12 bullet wounds. and when asked how he did that, brian said, "that's just the way we're made." that's just the way we're made. we may do different jobs and wear different uniforms and hold different views than the person beside us. but as americans, we all share the same proud title. we are citizens. it's a word that doesn't just describe our nationality or legal status, it describes the

way we're made. it describes what we believe. it captures the enduring idea that this country only works when we accept certain obligations to one another and to future generations. that our rights are wrapped up in the rights of others. and that well into our third century as a nation, it remains the task of us all. as citizens, of these united states, to be the authors of the next great chapter of our american story. thank you. god bless you. and god bless these united states of america. and there it is, the president, in a one-hour speech, laying out what he wants, his road map to the next four years, george, and the biggest moment, the most impassioned moment

seemed to be when he kept calling on members of congress just to submit gun legislation to a vote. >> the biggest applause. simply have a vote on gun control resolution the president wants to put forward. that's a realistic request. he knows that democrats and republicans are against some of the more ambitious proposals that he has, like a ban of assault weapons and a ban of high capacity gun magazines, but the gunnibeginning of the speec focused on the budget issues that have defined so much of the year and a half of this presidency. the president deslided the chamber when he tried to get democrats and republicans to agree to say, we're not going to shut down the government, we're not going to have any risk of default, democrats applauded, republicans did not. >> a quick note, if i can, right now, because we promise that we would keep you up to date on the latest developments on christopher dorner and the attempt to find him in that burning cabin to see if he was

really there, surrounded as he was by law enforcement. i want to go to our seen your justice correspondent pierre thomas, because he has some news at this moment. pierre, what have you learned? >> diane, two law enforcement sources have been telling us that a body has been removed from that cabin. they believe it is dorner. they are planning to seek additional verificatioverificat they are increasingly confident that this may be, in fact, over, diane. >> well, it's been nine tense, long, dangerous days for everybody in los angeles. he, of course, the former police officer who declared a vendetta, not only on policemen in l.a., but their families, as well. and back in the room now, with the president, as he's making his way out, jon karl, can you hear us? >> i sure can. he's still working the crowd. i tell you, i was struck by the way the president used the emotions in this chamber when he touched on that issue of gun control. you know, diane, many of the victims of some of those shootings you talked about at the beginning of the speech were

here and they began and they stood up, including gabby giffords and mark kelly, right here to my left, stood up while the president talked about that and that was the -- the loudest, the most emotional moment during this speech and it was a signal the president is going to fight hard for those gun control measures even though right now, on most of them, he just doesn't have the votes in this congress. >> george will, your thoughts on the speech? >> well, the speech occurs in the middle of a debate about spending and taxes that began immediately after the election, with the argument about the fiscal cliff. and the president said three things tonight that are very notable. first, he said nothing in all the list of things i'm proposing, will add a single dime to the deficit. that means he is assuming that there are going to be substantial revenue increases, because he does propose a lot of new spending and that is simply dubious, to put it mildly. then, he said, with regard to entitlements that are driving our fiscal problem, he said, we

shouldn't make promises we cannot keep, but we must keep the promises we have already made. that is the end of any illusion the republicans could have had about a grand bargain reforming entitlement programs as they now exist. now, the next event in this fiscal drama comes with the sequester. about that, the president said the cuts that would be caused by the sequester would be harsh, devastating and reckless. the cuts would cultt $85 billio from a budget of $3.5 trillion. $1.2 trillion from $44 trillion in a decade. now, if the president considers that harsh, devastating and reckless, it is clear the president says there's not going to be any spending. >> he is joined by senator john mccain and senate republicans who believe they would be devastating to the defense president. donna brazile? >> well, i thought the president was resolute. he understands that we have to continue to grow the economy, he

offered initiatives in energy, manufacturing, education, new research and development. the president is absolutely right that the time is now for congress to get behind him, to put off the sequester so that we can have a common sense approach, a balanced approach to dealing with what remains of our deficit problem. >> and matthew dowd, where did he rank in the enthusiasm generation? >> i think this speech is only going to be remembered for the last seven minutes of the speech, put it to a vote, the highest rhetoric of the speech. i think all the prescriptions that he made about the economy will be forgotten. the budget will be forgotten. the moment he went into the gun control conversation was when it soared and that's what people are going to remember. >> one of the few places where he actually applauded the efforts of congress, the bipartisan groups in the congress and senate working on immigration reform. >> that's right. i think we're going to hear from senator rubio in a few minutes.

the headline tonight is going to be these two very different, very polarized views about the role of government. we heard from president obama in his view, a defense of the role of government for doing good for creating prosperity. senator rubio is going to have a completely opposite view. he's going to talk about how prosperity is created through free enterprise and i think that republicans can have some home that we are setting up a big philosophical debate likes of which we haven't seen since early 2010 when we had the debate about health care. >> but again, this is just the kabuki watching from home. what did you think about congressman boehner's decision not to stand, except, i believe, on michelle obama and then he stood again -- >> well, i'm a fan of standing, i mean, i think it's polite and i think there were more things that republicans could have stood up for. i think that the one place where i wish republicans wouldn't cede the ground to obama is, we should be standing for comprehensive immigration reform. the rubio plan is comprehensive

in nature. we've as a party, the conservative platform is that we believe in doing all the pieces together. so, we should have stood to that. >> i think and you're right, this san example of two america. when he said the fix it first program, he described, here's what i want to do and i think the republican response to that is, it's wreck it ralph. their whole idea of his presidency is wreck it ralph, he's wrecking the country. we are seeing 48% of the country on each side of this and this speech and marco rubio's speech are going to respect that. >> martha raddatz, the president did announce the drawdown of troops from afghanistan, mentioned north korea as well. i was strike by his focus on that threat that we've heard so much about from leon panetta,wa. >> yeah, i was surprised by that, too, george, but that's become such a huge problem and that is an issue that americans really have not addressed. so, he addressed that tonight.

and i think there will be action on that moving forward. one thing that also surprised me is he talked about transparency. we've had john brennan hearings this past week where they talked about drone strikes and they wanted more transparency about that. the president talked about transparency, but i don't think he ever used the word drone. so, i guess we're not quite as transparent as we might want to be at this moment. but also, what struck me is the wor words "by the end of next year, our war in afghanistan will be over." that's really two-year-ol years that's quite a statement. >> and can we all have a molt for desiline? 102 years old who stood in line, went away, came back, just so that she could vote. that was also quite a moment. >> everybody standing and cheering for her, as the president does leave the chamber. we're going to take a break now, as the president leaves and come back in just a few minutes to

hear marco rubio, senator from florida, will deliver the republican response. president shaking a few more hands as he walks out that door. abc news live coverage of the state of the union address and the republican response is brought to you by -- in america today we're running out of a vital resource we need to compete on the global stage. what we need are people prepared for the careers of our new economy. by 2025 we could have 20 million jobs without enough college graduates to fill them. that's why at devry university, we're teaming up with companies like cisco to help make sure everyone's is ready with the know how we need for a new tomorrow. [ male announcer ] make sure america's ready. make sure you're ready. at devry.edu. ♪

live from washington, the state of the union address and the republican response. here again, diane sawyer and george stephanopoulos. >> and once again, george and i welcome you to the state of the union event. we are waiting, 41-year-old senator marco rubio, rising star of the republican party, who will give the response to the president. >> and we are also welcoming to our white house beat jim avila, joining jon karl on the white house beat and jim, we expect senator rubio to give his economic message to weave it together with his personal story. >> yes, george. in fact, what we're seeing here

tonight with senator rubio, even before he speaks, is the choice itself seems to be the message. this is a man who is going to deliver a traditional republican response here about the economy, lower taxes, but he's going to do it from a different perspective than the former standard bearer, a multimillionaire. this is a man who is going to emphasize that he is from the middle class, an immigrant family and that his policy and the policy of the republican party will help the middle class. and that's the major difference, that is, in fact, what may speak loudest tonight from the response. >> he has given the official republican response. we should point out that there is a dueling response from the party tonight. the tea party response is going to be given by rand paul. for the second state of the union in a row, we have a dueling tea party address. >> this is part of the beauty and chaos of our side. we like to hash it all out in full view of the media so you can make fun of us.

but rube yo is tio is the one w keeping an eye on. >> he's delivering it in spanish, as well. and here in the speaker's conference room at the capitol is the response to the state of the union, and that is senator marco rubio. >> good evening. i'm marco rubio. i'm blessed to respect florida in the united states senate. let me begin by congratulating president obama on the start of his second term. tonight, i have the honor of responding to his state of the union address, on behalf of my fellow republicans. and i'm especially honored to be responding to our brave men and women around the world. you have may be thousands of miles away, but you are always in our prayers. the state of the uniyoon is alws a address of how unique america is. for much of human history, most people were trapped in stagnant sometimes where a tiny minority always stayed on top and no one

else had a chance. but america is exceptional, because we believe that every life, at every stage, is precious. and that everyone everywhere has a god given right to go as far as their talents and hard work will take them. like most americans, for me, this ideal is personal. my parents immigrated here in pursuit of the opportunity to improve their life and to give their children the chance at an even better one. they made it to the middle class. my dad working at a bartender and my mother as a cashier and a maid. i didn't inherit any money from them. but i inherited something far better. the real opportunity to accomplish my dreams. this opportunity to make it to the middle class or beyond, no matter where you start out in life, it isn't bestowed on us from washington. it comes from a vibrant free economy where people can risk their own money to open a business and when they succeed, they hire more people who in turn invest or spend the money they make, helping others start